Allowed

Axis Bank Ltd. v. Jarnail Singh and Others

DRT8 Jul 2025OA/51/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application under Section 19 of RDBFI Act for recovery of Rs 32.50 Lakhs. The Tribunal accepted the bank's case in the absence of defendants and awarded uniform simple interest at 8% p.a. instead of the claimed rate, directing execution against mortgaged properties.

What did the court decide?

Recovery Certificate issued directing recovery of Rs 32,50,259.27 plus costs and uniform simple interest at 8% p.a. from filing date.

Axis Bank Ltd. versus Jarnail Singh and Others — Contract and Commercial Disputes | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.51/2025

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 16.01.2025

¶5

DATE OF DECISION: 08.07.2025

¶6

Axis Bank Ltd., (earlier Known as UTI Bank Ltd.), a banking company, carrying on the banking business under The Banking Regulations Act, 1949 incorporated under The Companies Act, 1956 and having its Registered Office at “Trishul”, 3^rd Floor, Opposite Samratheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380006 Gujarat and one of its Branch Offices amongst other places known as Axis Bank Ltd., situated in SCO No.367-368, 3^rd Floor, Sector 34-A, Chandigarh through its Manager Sh. Sandeep Kumar.

¶7

……..Applicant

¶8

Versus

¶9

Jarnail Singh S/o Sh. Sohan Singh R/o Village Bhagpur@Gagra, Tehsil and District Moga, Punjab-142043.

¶10

Gurmeet Kaur W/o Sh. Jarnail Singh R/o Village

¶11

Bhagpur@Gagra, Tehsil and District Moga, Punjab-142043.

¶12

Sukhdev Singh S/o Sh. Bhagat Singh R/o Village Bhagpur@Gagra, Tehsil and District Moga, Punjab-142043.

¶13

….……Defendants

¶14

Advocates:

¶15

Argued by Sh. Sukhvinder Singh Chaudhary, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant Defendants are ex parte

¶16

FINAL ORDER 1. Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.32,50,259.27p (Rupees Thirty Two Lacs Fifty Thousand Two Hundred Fifty Nine & Twenty Seven Paise only). The Original Application has been filed through Sh. Sandeep Kumar, authorized signatory o f the applicant, who is competent to institute the Original

¶17

2 OA NO.51-2025 AXIS BANK LIMITED VS JARNAIL SINGH AND OTHERS

¶18

Application vide GPA of Bank Official dated 16.09.2021, which is Annexure A1 to this OA.

¶19

The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.17.00 Lacs vide Loan application dated 14.06.2012, which is Annexure A2 to this OA.

¶20

The applicant sanctioned the KCC Limit of Rs.17.00 Lacs vide Sanction letter dated 24.07.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 34K-00M situated at Village Bhagpur @Gagra, Tehsil and District Moga, Punjab vide Registered Mortgaged Deed bearing vasika no.694 dated 01.08.2012, which is Annexure A8 to this OA. Documents executed: -Loan cum hypothecation agreement, Joint and Several DP Note, Deed of guarantee all dated 13.08.2012, which are Annexures A4 to A7 to this OA; Mutation dated 21.08.2013, which is Annexure A9 to this OA; AOD letter dated 16.02.2017, which is Annexure A10 to this OA; Recall notice dated 19.11.2024, which is Annexure A11 to this OA and statement of account along with certificate under banker books evidence, which is Annexure A12 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.32,50,259.27p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 02.07.2025.

¶21

3 OA NO.51-2025 AXIS BANK LIMITED VS JARNAIL SINGH AND OTHERS

¶22

In support of the OA, affidavit of Sh. Sandeep Kumar, authorized signatory, Axis Bank Ltd., h as been filed.

¶23

Heard arguments and perused record.

¶24

It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,50,259.27p (Rupees Thirty Two Lacs Fifty Thousand Two Hundred Fifty Nine & Twenty Seven Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.00%p.a. plus penal interest @2.00%p.a. from 30.10.2024 till the realization.

¶26

The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in

¶27

4 OA NO.51-2025

¶28

AXIS BANK LIMITED VS JARNAIL SINGH AND OTHERS

¶29

the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶30

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.32,50,259.27p (Rupees Thirty Two Lacs Fifty Thousand Two Hundred Fifty Nine & Twenty Seven Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

¶31

Any other application pending stands disposed of.

¶32

Issue Recovery Certificate accordingly.

¶33

Parties to appear before Learned Recovery Officer of this Tribunal on 28.07.2025.

¶34

Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶35

Pronounced by me in the open Tribunal .

¶36

Dated: 08.07.2025.

¶37

(MRIDULESH KUMAR SINGH) Presiding Officer,

¶38

DRT-III, Chandigarh

Axis Bank Ltd. v. Jarnail Singh and Others

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. v. Jarnail Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Budh Singh

Axis Bank Ltd. versus Sh. Harpal Singh

Axis Bank Ltd. versus Jagjit Singh and Another

Axis Bank Ltd. versus Tahil Singh

Kotak Mahindra Bank Limited versus Sh. Sukhraj Singh and Others

State Bank of India versus Jaswant Singh and Another